Gold Rises as Fed Rate Hike Bets Ease
Gold climbed above $4,150 an ounce on Monday, recovering some of the previous session’s losses as weaker-than-expected US jobs data eased pressure on the Federal Reserve to raise interest rates further. Data released Friday showed the US economy added just 29,000 jobs in September, far below expectations for a 90,000 increase, following a downwardly revised gain of 133,000 in August. The unemployment rate rose to 4.2%, while annual wage growth unexpectedly slowed to 3.0%, its weakest pace since May 2021. Markets are now pricing in nearly an 80% chance that the Fed will keep policy unchanged this month, while expectations for a December hike remained around 69%. Meanwhile, elevated Treasury yields continued to weigh on precious metals, with the US 10-year yield hovering near its highest level since 2002. Traders also faced heightened Middle East risks as Saudi-backed Yemeni forces launched a full-scale military operation to retake areas controlled by the Iran-backed Houthis.
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Gold climbed above $4,150 an ounce on Monday, recovering some of the previous session’s losses as weaker-than-expected US jobs data eased pressure on the Federal Reserve to raise interest rates further. Data released Friday showed the US economy added just 29,000 jobs in September, far below expectations for a 90,000 increase, following a downwardly revised gain of 133,000 in August. 0%, its weakest pace since May 2021. Markets are now pricing in nearly an 80% chance that the Fed will keep policy unchanged this month, while expectations for a December hike remained around 69%.
Meanwhile, elevated Treasury yields continued to weigh on precious metals, with the US 10-year yield hovering near its highest level since 2002. Traders also faced heightened Middle East risks as Saudi-backed Yemeni forces launched a full-scale military operation to retake areas controlled by the Iran-backed Houthis.